Mincon Group Plc Interim Trading Update (6693Y)
May 09 2023 - 1:00AM
UK Regulatory
TIDMMCON
RNS Number : 6693Y
Mincon Group Plc
09 May 2023
MINCON GROUP PLC
("Mincon" or the "Group")
Q1 2023 TRADING UPDATE
Mincon Group plc (Euronext:MIO; AIM:MCON), the Irish engineering
group specialising in the design, manufacture, sale and servicing
of rock drilling tools and associated consumable products, today
provides a trading update for the period from 1st January 2023 to
date, incorporating the first quarter to 31st March 2023.
While revenue in Q1 2023 was marginally behind the same period
in the prior year, we are pleased with further improvement in our
gross margin in the first quarter. The reduced revenue in Q1 is a
result of lower revenue than expected in the mining industry, due
to reduced activity in the exploration sector during the quarter
and resultant lower orders from some specific large customers as
they adjust their inventories in response. However, we remain
confident in our outlook for this segment and expect that our
mining revenue will improve as the year progresses.
Our revenue in the construction industry remains strong and we
continue to make progress in winning small to mid-size construction
projects in Europe and North America. The very strong construction
revenue growth in North America during 2022 has continued at the
same level into Q1 2023. Coupled with this, we have also seen good
growth in construction revenue for the first quarter in the
European market.
We have made progress on reducing our order backlog in the past
quarter and are better positioned to deliver quicker to our
customers. This has allowed us to reduce our dependence on air
freight and improve our gross margin. Our price increases,
introduced in 2022 to offset manufacturing and operating cost
increases, have also contributed to better margins than in the
first quarter of 2022.
We continue to refine the performance of the rig on which the
Greenhammer is operating with our customer in Western Australia. We
have also entered into a collaborative programme with a leading
global rig manufacturer with the joint objective of ensuring that
the rig upon which our Greenhammer system is mounted will enable
the effective roll-out of this important technology.
We maintain a positive outlook, both for the remainder of 2023
and on our long-term outlook for the industries in which we
operate. Our ambitious product development programs should serve us
well in the global challenges ahead to reduce carbon emissions. We
continue to improve the efficiencies of our manufacturing plants
which will reduce emissions and enhance our manufacturing
margins.
Ends
9(th) May 2023
For further information please contact
Mincon Group plc
Joe Purcell - Chief Executive Officer Tel: +353 (61) 361 099
Mark McNamara - Chief Financial Officer
Davy Corporate Finance (Nominated Adviser, Euronext Growth
Listing Sponsor and Joint Broker)
Anthony Farrell Tel: +353 (1) 679 6363
Daragh O' Reilly
Shore Capital (Joint Broker)
Malachy McEntyre Tel: +44 (0) 20 7408 4090
Mark Percy
Daniel Bush
Forward looking statements
Any forward-looking statements made in this document represent
the Board's best judgment as to what may occur in the future.
However, the Group's actual results for the current and future
financial periods and corporate developments will depend on a
number of economic, competitive and other factors, some of which
will be outside the control of the Group. Such factors could cause
the Group's actual results for future periods to differ materially
from those expressed in any forward-looking statements included in
this announcement.
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END
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